The Home Valuation Code of Conduct (HVCC or the 'Code') is an American document created jointly by members of Freddie Mac, the Federal Housing Finance Agency (FHFA), and the New York State Attorney General.
The document states effective May 1, 2009, Freddie Mac will no longer purchase mortgages from Sellers that do not adopt the Code with respect to single-family mortgages that are delivered to Freddie Mac.
Also, effective for single-family mortgages made after May 1, 2009, Freddie Mac Seller/Servicers must represent and warrant that the appraisal report is obtained in a manner consistent with the Code.
Certain types of mortgages are excluded from the Code, including: FHA/VA Mortgages, Section 184 Native American Mortgages, and Section 502 Guaranteed Rural Housing Mortgages.
The code has not been well accepted by the most experienced Real Estate Appraisers as the code eliminated constructive working relationships with lenders and brokers that had been in place and working well for decades in some instances, therefore forcing appraisers to work for Appraisal Management Companies that generally pay only 50% of the fee that was once paid to the appraisers.